Texas Hard Money Lenders

Here’s a complete list of Texas hard money lenders. Lending information, like rates and qualifications, are regularly updated to make comparing hard money loans in Texas easy. For more info, read our review of the best hard money loans or visit our national hard money directory.

Patch of Land Patch of Land has been in business since 2013. Their rates start at 8% and they lend up to 85% LTV and up to 70% ARV. They can fund l... View Profile

Hard money lenders in Texas are ready to finance your next real estate investment in Houston, San Antonio, Dallas, Austin, and Fort Worth. That includes the surrounding suburbs and communities around Texas A&M University & The University of Texas.

Whether your next project is a fix-and-flip or a rehab-to-rent, these private lenders can help. As we discover new hard money lenders that serve Texas, we add their information and loan details to our list. If you’ve worked with a great lender on a past project and you don’t see them on our list, let us know!

1. Rental Properties Offer Better Investment Opportunities

A predominant theme for real estate investors in 2018 was a shift away from speculative new construction and fix-and-flip investing towards building portfolios of rental properties. While the influx of population into the State of Texas as a result of low unemployment continues to drive the real estate market, it’s becoming more difficult for investors to acquire property at a low basis. As such, the demand for lending on portfolios of single-family residential real estate has increased.

2. There’s a Huge Demand of Homes Due to an Influx of People in TX

It seems that Texas is a magnet for corporate relocations and for people just wanting a change of scenery so they move here. On average 1,000 people per day moved to Texas in 2017 and 400 of that 1,000 moved to DFW. I believe that Texas has a lot to offer but specifically we have a very affordable housing market and a diverse job market. These two items are what has driven a lot of people to relocate here over the past several years. There have been numerous companies relocate their headquarters to Texas and specifically the North Texas area so the demand for homes has been huge.

3. Texas Hill County is Still a Desirable Area

The Texas real estate market has tapered off some during 2018. There are some areas that always tend to do well even during slower markets such as the Texas Hill Country which is a highly desirable area. In addition, the oil market has influenced real estate in West Texas especially, driving up housing and land prices. We expect lower oil prices to slow down oil activity which should have a slowing effect on the West Texas real estate markets as well.

4. It’s a Landlord Market in the Major Metropolitan Areas in Texas

On the ground, there’s a generally rising rental rates across the board coupled with early signs of stiffening resistance to previously-common lease concessions. Having been through both the highs and lows of Texas real estate, it looks like a subtle shift in favor of landlords overall, with several high-demand markets already enjoying their best occupancy rates in decades. The five major metropolitan areas in Texas – Houston, Dallas, Fort Worth, Austin and San Antonio – currently appear to be growing in leap-frog fashion, with Houston and Dallas nudging ahead slightly and San Antonio a step behind. It should not surprise anyone if most of these cities find themselves in a full-on “landlord market” in the near future. And if these trends hold and improve, and the price of oil and gas rises further, the Texas economy should really take off.

5. Texas Real Estate Continues to Grow

Texas continues to thrive in job growth and consequently, in population growth as we see these expansions continue to stimulate the demand for residential real estate. This past year, Texas was the home to the second largest number of Fortune 500 companies. In fact, CNBC recently named Texas the country’s Top State for Business in 2018, and according to the Texas Chamber of Commerce, Texas is in the top three states for foreign investors. Dallas and Houston have both seen major growth in the housing market over the past few years while offering development opportunities throughout.

6. Fewer Homebuyers, More Renters

Right now we are noticing two trends. One, the market is softening more and more, all the while purchase prices are going up. Two, the upper market segments are taking more time to sell than compared to the lower market segments. Rental rates are also increasing – the demand for rental properties is strong right now, and there is a shortage of supply. We have a lot of people moving to Texas and not enough houses to keep up with the demand. That normally would indicate an upward trend in purchase and rental rates. But with the increase in mortgage rates, and the affordability of homes purchasing becoming out of sync with wages, we are seeing the purchase market softening, but the rental market is maintaining its strength. With less people purchasing homes we are seeing that demand shift to the rental side of things.

7. The Downtown Dallas is Experiencing a Revival

The downtown Dallas real estate market is experiencing a revival. Our Central Business District is thriving with residential growth, new apartments and a trend in both residential areas and companies moving back the core. Young people want to live near where they work, have easy access to transit and affordability. Dallas is attracting corporate relocations from all over the country due to its low cost of living and accessibility.

8. Houston is an Affordable Place to Own Real Estate

Houston is home to 49 Fortune 1000 companies and the largest medical center in the world — The Texas Medical Center — which have undoubtedly contributed to Houston’s 14% of population growth over the last 5 years. What’s better is the fact that the median sales price of real estate is 20% below the national average at just $150,000 — making it a very affordable place to own real estate.

9. Dallas is a Popular Place for Buy and Hold Investment Properties

Dallas is the one of the most populous metropolitan areas in the nation. The Dallas metro area is a great place to invest in buy and hold real estate, especially for investors looking to purchase cash-flowing property in a fast growing market. The average monthly rent is between $1,500 to $1,600. With the population growth and increase in employment opportunities, Dallas has become one of the strongest real estate markets today.

10. San Antonio is a Good Location for High-ROI Investment

San Antonio is one of the best locations to consider if you want to invest in rental properties that have a potential for high returns. This is further reinforced by the city hosting the 2018 Vacation Rental Success Summit, which attracts rental managers from all over the world.

11. There’s a Big Demand for Rental Properties in Texas

There’s a big demand for rental properties, and with this, rental prices continue to go up. In the multi-family housing market, they can’t build enough units as people are filling them out very quickly. There are 100-unit projects that get filled, in what seems like minutes as soon as they hit the market. The supply of the rental properties cannot keep up with the demand.

12. Invest in Outlying Areas Beyond the DFW Metroplex

The outlying areas beyond the Dallas-Fort Worth metroplex are also great areas to find investment properties. As more people move outside the city limits to find affordable housing, renters are also finding more for their rental dollar in smaller towns. So if you’re thinking about investing, it’s also a good idea to get out of the city.

13. Austin is a Home for Tech-Oriented Families

With Austin claiming robust tech credentials — including headquarters for Dell, Google, Apple, as well as startups — residential developers attract the booming region’s families looking to put down roots. Many homeowners customize their homes to suit their careers, like upgrading their internet speeds and modifying floor plans to accommodate home offices. New homes exhibiting these features will be especially popular with technology-oriented consumers enjoying the region’s economic growth.

14. Houston Remains the National Metropolitan Leader

Houston remains the national metropolitan leader, issuing around 3,300 adjusted monthly permits. It is the only major market with months of inventory (MOI) above the state level. Property sales in Houston are still elevated, and homes remain available in the market at an average of 57 days before they are sold. The median home price in Houston is around $232,542.

15. There’s a Rise in Suburban-Urban Markets

The combination of one-or-two-location concepts in mixed-use projects illustrates the new suburban-urban market trend. Nowadays, people who live in the suburbs want a taste of an urban environment. This is the reason why real estate investors develop new-vintage multi-family properties, combined with commercial establishment and service space. These projects are what we call the burgeoning suburban-urban marketplace.

16. Dallas/Fort Worth is an Ideal Place to Invest in SFR Properties

Dallas/Fort Worth is one of the best places to invest in for single family residence (SFR) properties in the Lone Star State. Investors in D/FW are reaping the benefits of strong rental demand, healthy first-year yields, solid long-term appreciation, and low median entry prices. Asking rents in D/FW increased by 5.2% year-over-year in April 2018 to $1,565, while vacancies dropped 60 basis points during the same time period to 5.8%.

17. There’s an Increase in Rental and Occupancy Rates in Houston

The retail market in Houston reports an occupancy rate of around 94% during the first quarter of 2018. Single-family home sales increased — but even as the housing demand continues to grow, the housing market inventory is still constrained. With the rising demand and lesser supply, the rental rates have also increased.

18. Keller Offers Good Potential for Real Estate Investment

Keller is a city with a diverse housing market — from multi-family apartments, patio homes, and luxury houses — making it a great place for real estate investment. The median price rent in Keller is approximately $1,200, and a median home value is around $383,100. Keller is a great place to live and is appealing to homebuyers because it has an extraordinary school district, an active business community, great city facilities, and a nationally accredited emergency services.

19. Expect More Community Opposition to Development

Due to extreme growth seen in Texas over the past decade, along with the resulting boom in building, there will be more community opposition to development. This opposition will be seen particularly in areas that are already heavily congested, suburbs plagued by insufficient traffic handling, and neighborhoods that are adjacent to historic areas.

20. Take Note of San Antonio’s Worst Zip Codes for Real Estate Investment

Ten worst San Antonio zip codes that don’t have much sold properties include 78220, 78006, 78202, 78015, 78209, 78255, 78207, 78203, 78256, and 78257. Most of the properties being sold in these zip codes are very high-priced, and they also have the highest months inventories.

Bottom Line

Texas is a big state with lots of opportunities for real estate investors.The real estate market in the Lone Star State is still on the upward swing, and demand is often greater than supply. Its growing real estate market makes it attractive for local investors as well as out-of-state investors. If you’re planning on investing in Texas, use the above expert insights as a guide to help find the best opportunities.

Hard Money Calculator

Hard money lenders offer short term loans to real estate investors. They can be a perfect partner for those undertaking fix and flip projects, rehabs and renovations. But, as any experienced investor will tell you, hard money loans can get pricey. To avoid paying surprises, use our calculator to estimate how much you’ll be able to borrow and the total costs of the hard money loan.

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